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First Half 2017 NYC Investment Sales Report
August 15, 2017
Citywide Investment Sales activity slowed markedly in the first half of 2017 compared to the first half of 2016. The total consideration, or total monetary value for recorded transactions, declined 39 percent to $18.0 billion in the first half of 2017. The total number of transactions declined six percent to 2,419 in the first half of 2017, a short cry from the 2,581 transactions that occurred in the first half of 2016.
The total dollar consideration of Manhattan investment sales decreased 49 percent to $10.8 billion in the first half of 2017 from $21.2 billion in the first half of 2016. The number of Manhattan transactions decreased eight percent to 467 in the first half of 2017 from 508 in the first half of 2016.
Staten Island investment activity showed strong gains year-over-year. Investment properties worth a total of $300 million were sold in 190 different transactions. The total consideration and number of transactions increased by 61 percent and 23 percent, respectively, since the first half of 2016.
The five largest investment sales transactions (by sale price) in the first half of 2017 were the:
- $2.2 billion sale of 245 Park Avenue, a full-block office building bounded by Park Avenue, East 47th Street, Lexington Avenue, and East 46th Street.
- $1.0 billion sale of the office building at 60 Wall Street
- $686 million sale for a 50 percent stake in Worldwide Plaza, located on the block bounded by Eighth Avenue, West 50th Street, Ninth Avenue, and West 49th Street
- $652 million sale of the office building at 85 Broad Street
- $410 million sale for the hotel portion of the Hilton at 1335 Avenue of the Americas
Sales Activity by Borough
Total dollar consideration in Staten Island topped $300 million in the first half of 2017. The number of transactions increased 23 percent to reach 190 in the first half of 2017 compared to 155 in the first half of 2016. Although there were no multifamily properties were sold in Staten Island in the first half of 2017, sales of Garages / Gas Stations / Vacant land, Industrial, and Retail properties combined to account for 89 percent of the total consideration of properties traded. The highest-priced transaction in Staten Island in the second half of 2017 was the $67 million sale of a 2.1 million square foot vacant site located south of the Goethals Bridge off-ramp on Bloomfield Avenue.
Queens completed $2.0 billion of investment sales in the first half of 2017 declining 14 percent from $2.4 billion of sales in the first half of 2016. Queens’ transactions dropped 4 percent, to 552 in the first half of 2017 from 576 in the first half of 2016. The highest-priced transactions that occurred in Queens in the first half of 2017 were the $167 million sale of the Ravenswood Generating Station on the west side Vernon Boulevard between 36th Avenue and 40th Avenue, and the $140 million sale of the Rego Park office building at 95-25 Queens Boulevard.
Total sales in Brooklyn decreased 14 percent, recording $3.6 billion in the first half of 2017 compared to $4.2 billion in the first half of 2016. Transactions dropped by six percent to 849 in the first half of 2017 from 901 in the first half of 2016. The total sales consideration of Brooklyn office buildings more than doubled in the first half of 2017, totaling $682 million in this half compared to $279 million one year ago. This large consideration number was due to the sale of four Office buildings located at 107 Adams Street, 137 Pearl Street, 175 Pearl Street, and 64 Prospect Street in DUMBO; each of which closed on the same day and totaled $461 million. The highest-priced transaction in Brooklyn recorded in the first half of 2017 was the $160 million sale of the industrial land assemblage between North 10th Street, Kent Avenue, North 12th Street, and the East River (20 North 12th Street, 2 North 12th Street, 16 North 11th Street, and 33 North 10th Street), which will become the Bushwick Inlet Park.
In the first half of 2017, Bronx consideration decreased 20 percent compared to the first half of 2016. The borough sold $1.2 billion of investment properties in the first half of 2017 compared to $1.5 billion in the first half of 2016. The number of transactions decreased 18 percent to 361 in the first half of 2017 from 441 in the first half of 2016. The highest-priced Bronx transaction that occurred in the first half of 2017 was $78 million sale of the 498-unit, Multifamily Elevator building at 225 East 149th Street.
Manhattan property investment sales value and activity outnumbered the other boroughs, but the difference of consideration and transactions between Manhattan and the other boroughs is shrinking. Manhattan investment sales saw a 49 percent decrease to $10.7 billion in the first half of 2017 compared to the first half of 2016 when $21.2 billion of investment property was sold. The total number of Manhattan transactions declined eight percent from 467 in the first half of 2017 compared to 508 in the first half of 2016. The borough however, accounted for 60 percent of total New York City investment sales consideration, which is the smallest share of citywide consideration Manhattan has seen since REBNY started tracking sales in the first half of 2014.